Exchange Rate Of Indian Rupee To Canadian Dollar
India and Canada share a long-standing trade relationship, which makes it essential to keep track of the exchange rate between their currencies. The Indian Rupee (INR) is the official currency of India, and the Canadian Dollar (CAD) is the official currency of Canada. In this article, we will discuss the exchange rate of the Indian Rupee to Canadian Dollar.
Factors Affecting the Exchange Rate
The exchange rate between two currencies is determined by various factors, including the balance of payments, inflation rates, interest rates, political stability, and economic performance. The balance of payments is the difference between a country's exports and imports. If a country exports more than it imports, it will have a surplus in its balance of payments, which will increase the value of its currency.
Inflation rates also affect the exchange rate. If a country has high inflation rates, its currency will lose value because its purchasing power decreases. On the other hand, a country with low inflation rates will have a currency with a higher value.
Interest rates also play a role in determining the exchange rate. If a country's interest rates are high, foreign investors will be attracted to invest in the country, which will increase the demand for its currency, resulting in a higher exchange rate.
Political stability and economic performance are also essential factors that affect the exchange rate. If a country has political instability, investors will be hesitant to invest in the country, resulting in a lower demand for its currency, leading to a lower exchange rate. Similarly, if a country's economic performance is weak, its currency value will decrease.
Current Exchange Rate
As of September 2021, the current exchange rate of Indian Rupee to Canadian Dollar is approximately 0.017 CAD for 1 INR. This means that one Canadian Dollar can be exchanged for around 57 Indian Rupees.
The exchange rate is continually fluctuating based on various local and global factors, including the COVID-19 pandemic, economic policies, and international trade agreements. Therefore, it is essential to keep track of the exchange rate to make informed decisions regarding trade and investments between India and Canada.
Historical Exchange Rate
The exchange rate between the Indian Rupee and Canadian Dollar has been fluctuating over the years. In 2016, one Canadian Dollar was worth around 49 Indian Rupees. However, in 2018, the exchange rate dropped to around 51 Indian Rupees for one Canadian Dollar.
In 2020, due to the COVID-19 pandemic and its impact on the global economy, the exchange rate dropped to around 55 Indian Rupees for one Canadian Dollar. However, in 2021, the exchange rate has again increased to around 57 Indian Rupees for one Canadian Dollar.
Impact on Trade and Investments
The exchange rate between two currencies can have a significant impact on trade and investments between two countries. When the exchange rate is favorable, it becomes cheaper for businesses to import goods from the other country, leading to increased trade. Similarly, foreign investments become more attractive when the exchange rate is high.
On the other hand, when the exchange rate is unfavorable, it becomes more expensive for businesses to import goods from the other country, leading to decreased trade. Similarly, foreign investments become less attractive when the exchange rate is low.
Conclusion
The exchange rate between the Indian Rupee and Canadian Dollar is continually fluctuating based on various local and global factors. It is essential to keep track of the exchange rate to make informed decisions regarding trade and investments between India and Canada. The current exchange rate of Indian Rupee to Canadian Dollar is approximately 0.017 CAD for 1 INR. However, it is crucial to note that the exchange rate is subject to change and can have a significant impact on trade and investments.